News updates February 19, 2022
1. Cryptocurrencies in Italy, chasing crime in the absence of regulations
1) The fight against tax evasion and money laundering
After the signing of the decree imposing registration in the OAM register and a series of obligations to periodically report data on transactions and customers to be borne by basically any operator dealing with cryptocurrencies, in the guiding act of the MEF for the achievement of the fiscal policy objectives for the year 2022 – 2024, one of the declared priorities is to focus on cryptocurrencies, in order to fight evasion.
2) Cryptocurrencies in Italy: the absent legislation
This brings us back to the central problem, which is the lack of specific tax legislation on cryptocurrencies and other cryptographic assets (tokens, NFTs, etc.).
It is well known that the theorem of taxation of capital gains generated by cryptocurrencies and other crypto-assets is the result of merely interpretative acts of the Revenue Agency, based on the axiom of equating cryptocurrencies to foreign currencies.
A thesis which, on closer examination, lends itself to very heated criticism, all of which has been promptly put forward by the most authoritative doctrine in the sector.
The same is substantially valid for the obligations of declaration of the crypto-currencies in the famous (or infamous) RW form: the existence of this obligation passes exclusively through an interpretation based, in a questionable way, on the formulation of the instructions of compilation of the income declaration which, if read carefully, one discovers that it does not say what many claim it says.
Therefore, if the phenomena linked to the digital economy deserve all this attention on the front of anti-money laundering legislation, what is it that blocks the production of tax rules that take into account the many particularities of completely deregulated assets, such as cryptocurrencies?
It is possible that Satoshi Nakamoto would turn in his virtual grave at such a prospect, but everyone would gain: savers and investors would certainly gain in terms of peace of mind. The tax authorities would gain in terms of certain revenues. And, finally, the system as a whole would gain in clarity.
2. Crypto Exchange Binance Halts Activities in Israel After Regulator Raises Licensing Issue
Binance has reportedly halted services in Israel after the cryptocurrency exchange was approached by the country’s financial regulator inquiring about its activities and the licenses under which it operates. A growing number of regulators have been scrutinizing Binance for operating without a license in their jurisdictions.
3. Russia-Ukraine Tensions Wipe $160 Billion Off Crypto Markets; Stablecoin Demand Rises
Cryptocurrencies, along with broader markets, fell amid warnings from Western leaders that a Russian invasion of Ukraine was imminent. Safe-haven assets including gold, U.S. Treasuries and stablecoins benefited.
4. Crypto Taxes You Should Be Aware Of This 2022 – The IRS Breathes Down Your Neck
If you’ve gone deep in the current crypto craze, you might need to prepare your heart once you do your crypto taxes.
Crypto may have started out as a humble money gig, but with its total value at nearly $2 trillion, many are betting it’s “the future of money.”
1) Crypto Taxes: On Purchasing
Businesses and shops are gradually incorporating virtual currency as legitimate means to purchase goods or services.
With this, however, your purchase counts as a sale of that crypto and you’ll owe capital gains taxes. So even arbitrary purchases – like coffee and sandwiches – can add up to a significant sum by the end of the year.
Not only that: you’ll also have to pay any applicable sales tax.
2) Crypto Mining
Yes, you read it right. Even the most basic activity in crypto triggers a taxable opportunity in the eyes of the IRS.
If you increase your total amount of coins by mining it, it becomes your regular taxable income which makes you owe at a regular income tax rate.
If you spend or sell them later at a certain profit, on the other hand, you still would owe capital gains tax rate, depending on how long you’ve possessed it.
3) Gifting Crypto
Whatever the occasion, you should be aware that the IRS is alwayss breathing down your neck for taxes – whether you give or receive crypto as a gift.
Last year, the IRS announced a $15,000 threshold as the amount at which the gift isn’t classified as income.
But there are a lot of nuances if it’s a crypto gift.
Since their values fluctuate frequently, you are subjected to a capital gain and you’ll be thus required to pay capital gains taxes based on how much you profited from them.
4) Crypto Gaming
With play-to-earn (P2E) online games that reward players with DeFi tokens on the rise, many are tuning in the industry as a new passive source of income. Obviously, these aren’t exempt from taxes.
As players increase their financial assets in the real world, taxes are going to be inevitable, unlike in traditional gaming wherein rewards only operate within the game itself.
5. $BTC: A PROPERTY STARTUP BACKED BY JEFF BEZOS SELLS ITS FIRST PROPERTY IN COLOMBIA FOR BITCOIN
*Prometheus International, a real estate developer in Europe, sold two luxury residences on the Portuguese island of Madeira for a total of €4.1 million ($4.7 million), paid in the popular cryptocurrency Cardano ($ADA).
* The deal was mediated by online real estate firm La Haus after it received a reserve payment of 0.03 BTC a month ago.
* The transaction was completed via the Lightning Network, Bitcoin’s layer-two scaling mechanism, and a payment processor named OpenNode. The buyer was not in Colombia at the time of the transaction, which took place around a month after La Haus began accepting bitcoin payments.
The first real estate transaction in Colombia was recently completed using the flagship cryptocurrency bitcoin ($BTC), after a Jeff Bezos-backed Latin American real estate website sealed a contract for an apartment in Natura, in the country’s northwestern region.
1) BITCOIN’S LAYER-TWO SCALING MECHANISM
The deal was mediated by online real estate firm La Haus after it received a reserve payment of 0.03 BTC a month ago, according to Valora Analitik, and it’s not the company’s first BTC sale; it sold a property for the cryptocurrency in Mexico.
The transaction was completed via the Lightning Network, Bitcoin’s layer-two scaling mechanism, and a payment processor named OpenNode. The buyer was not in Colombia at the time of the transaction, which took place around a month after La Haus began accepting bitcoin payments.
2) TWO LUXURY RESIDENCES ON THE PORTUGUESE ISLAND OF MADEIRA FOR A TOTAL OF €4.1 MILLION ($4.7 MILLION), PAID IN THE POPULAR CRYPTOCURRENCY CARDANO ($ADA)
It’s worth mentioning that cryptocurrency adoption in Latin America is on the rise. One of the key drivers of that growth is the real estate sector, with certain enterprises in Venezuela accepting the USDT stablecoin in exchange for automobiles and houses. In October 2021, Prometheus International, a real estate developer in Europe, sold two luxury residences on the Portuguese island of Madeira for a total of €4.1 million ($4.7 million), paid in the popular cryptocurrency Cardano ($ADA).
6. Court Orders Freeze of Canadian 'Freedom Convoy' Crypto Fundraising
The funds in over 120 crypto addresses were ordered frozen by a special injunction by an Ontario court
A private class action lawsuit against participants in Canada's "freedom convoy" has successfully secured an injunction freezing funds raised via crypto donations.
A Mareva injunction was signed on Thursday by Ontario Superior Court of Justice Judge Calum MacLeod and freezes crypto assets in more than 120 different addresses tied to BTC, ADA, ETH, LTC and XMR. A Mareva injunction is a court order used in the U.K. and Canada that freezes a defendant's assets in order to prevent them from being spent, hidden or moved before a judgment is ordered
The news comes days after the Canadian government froze 34 crypto addresses in connection with the ongoing trucker protests, which blocked bridges and border crossings into the U.S. in defiance of Canada's vaccine mandate, under the nation's Emergencies Act.
7. Keep Your Coins Act: US Lawmaker Introduces Bill to Protect Privacy in Cryptocurrency Transactions
A U.S. congressman has introduced the “Keep Your Coins Act” in order to “preserve Americans’ right to privacy in transacting with crypto assets.” The lawmaker says, “this legislation would prohibit any federal agency from promulgating a rule that would impair a person’s ability to act as self-custodian.”
US Lawmaker Seeks to Protect Privacy in Crypto Transactions With ‘Keep Your Coins Act’
The office of Congressman Warren Davidson (OH-R) announced Thursday that the lawmaker has introduced the Keep Your Coins Act “to protect transaction privacy.”
The announcement explains that the proposed legislation is “designed to preserve Americans’ right to privacy in transacting with crypto assets,” adding
Specifically, this legislation would prohibit any federal agency from promulgating a rule that would impair a person’s ability to act as self-custodian.
“A person would then be able to conduct peer-to-peer transactions with their crypto assets without the need to utilize a third-party intermediary,” the announcement continues. “This would essentially cut out any need for a financial institution or money service business to facilitate a transaction.”
The lawmaker from Ohio detailed: “As the federal government seeks more regulation of the crypto ecosystem, it seeks to impose more surveillance over American citizens. It’s vital that we preserve the attributes of cash transactions by protecting the permissionless nature of cash.” Rep. Davidson stressed:
No third party should be required for two people (or companies) to use money as a means of exchange, store of value, and record of account. This bill ensures that individuals will always have the ability to transact without any intermediaries.
8. American Truckers Are Planning a Convoy to Washington, Group Raises Over $100K
While the Canadian government and Prime Minister Justin Trudeau try to quell the demonstrations in Ottawa by sending police to the encampment on Friday, a United States version of the Canadian trucker’s Freedom Convoy called the “People’s Convoy” is underway. According to the American Foundation for Civil Liberties & Freedom, the U.S. convoy has raised more than $100K so far
As Trudeau Cracks Down on Trucker’s Protest in Ottawa an American Convoy Is Underway
For weeks, the entire world has been watching the Freedom Convoy protests in Canada and the hundreds of truckers participating in the effort. The truckers protested in the streets of downtown Ottawa over the Covid-19 vaccine mandates applied to the trucking industry. In recent times, the Canadian government has enacted the Emergencies Act, after Trudeau said he would do “whatever it takes” to end the protest in Ottawa.
The national police in Canada also sent letters to crypto exchanges asking them to single out over two dozen digital currency addresses. This was after Gofundme shut down the Freedom Convoy’s fundraiser, and supporters initiated cryptocurrency fundraisers. Furthermore, Trudeau warned that more crypto accounts will be targeted and he sent the police into the Freedom Convoy encampment to arrest those who continue to protest.
American Truckers Are Planning a Convoy to Washington, Group Raises Over $100K
In the meantime, a United States-based convoy is being planned as well, and the American truckers have started to get attention from the media. The U.S.-based trucker’s convoy is called the “People’s Convoy” and the group says it’s “time to end the Declaration of National Emergency concerning the Covid-19 pandemic and restore our nation’s constitution.” The website has a registration sign-up where truckers can participate in the “lawful” demonstration. According to the website, as of Friday, February 18, donations are “now over $100,000.”
